By John Q. Hosedrinker 
Michael Jordan is slated to testify in a federal antitrust trial against NASCAR, as his co-owned 23XI Racing team, along with Front Row Motorsports, alleges the racing circuit is a monopoly. The lawsuit, filed in 2024, claims NASCAR limits team revenues and freedom by requiring standardized cars and parts from approved suppliers. The teams are also contesting NASCAR’s charter system and the league’s control over track approvals. Jordan has stated he is fighting for the rights of smaller teams as well.
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Michael Jordan is set to testify in a high-profile antitrust trial involving NASCAR, and it’s safe to say this is a clash that has everyone’s attention. To those unfamiliar with the sport, the name Michael Jordan resonates far beyond the world of basketball. He’s a global icon, and his involvement in this legal battle against NASCAR is, to put it mildly, intriguing. The general consensus seems to be that NASCAR may have underestimated the reach and determination of the man they’re going up against. It’s almost as though NASCAR, with all its power and resources, dared to take on a challenge it wasn’t quite ready for.
Now, it’s worth noting that the judge overseeing the case has reportedly been urging both sides to settle, hinting that neither will be particularly pleased with the final outcome. However, given NASCAR’s reputation for a rather inflexible “my way or the highway” approach, it’s not entirely surprising that a settlement hasn’t materialized. The crux of the matter revolves around the core issue: the teams believe that NASCAR is abusing its power as the preeminent stock car racing series in the United States.
The heart of the teams’ argument is centered around the new “Next-Gen” car, which was intended to level the playing field and reduce costs for smaller teams. But, in a twist of events, it has actually increased expenses. The teams can no longer manufacture their own parts, source them on their own, or even repair damaged components, all contributing to elevated operational costs. The charter agreement negotiations were also fraught with tension. Teams believe that NASCAR was never genuinely interested in meeting their key demands.
One particularly contentious incident occurred when NASCAR presented the finalized charter agreement to the teams. The documents arrived late on a Friday afternoon with a tight deadline for signature – in some cases, teams were given less than an hour to review and sign. Several teams, including Jordan’s 23XI Racing, and Front Row Motorsports, refused to sign, primarily because the agreement included a clause preventing teams from suing NASCAR. Other teams reported feeling pressured to sign, citing the responsibility they had to their employees.
The teams essentially feel like NASCAR is saying, “If you don’t like it, create your own racing series.” However, that’s not as simple as it sounds. NASCAR enjoys a unique position where racetracks require an exemption to host other stock car racing events if they already host a NASCAR race. Even the tracks that NASCAR doesn’t directly own are subject to this rule. The teams argue this effectively prevents them from starting a competing series, as NASCAR already races at nearly every well-maintained track over a mile long in the country. To drive the point home, NASCAR reportedly blocked the upstart SRX series from racing at their tracks.
There’s a sense that this case could be more than just a legal dispute; it could be about challenging NASCAR’s fundamental structure. Michael Jordan’s willingness to fight this out to the end, regardless of the financial implications, speaks volumes about his commitment. Some have even gone so far as to suggest that, if Jordan wins, it would be a significant addition to his already legendary legacy. The trial itself has been ongoing since early in 2024 and is taking place in Charlotte, North Carolina. 23XI Racing, along with Front Row Motorsports, is seeking to prove that NASCAR is a monopoly that restricts teams’ revenue and operational independence.
One of the more interesting arguments is centered around standardization of equipment. While other sports like MLB and NFL also have specific rules around equipment, those rules are made by the league and are, at least in theory, subject to change by team input. However, in NASCAR’s case, the teams feel that they don’t have an adequate say in the decision-making process. The situation has been framed as a battle between Jordan and the “good ole boys.” The contrast is interesting: Jordan came from the business of basketball, where financial stability is nearly guaranteed. In contrast, many of the other owners in NASCAR are billionaires, who are willing to take on significant financial losses due to the love of the sport. The teams’ argument is that before the current “Next-Gen” car, a team could build or source parts for themselves and potentially lower costs that way, which is no longer possible.
The “Next-Gen” car was intended to level the playing field by standardizing components. However, this has resulted in increased costs because teams can’t manufacture or repair parts. It has created significant waste and higher expenses, which goes against the original intent. The teams believe that the current state of NASCAR is more like Roger Goodell and his family owning the NFL and the teams having little to no say in the decisions of the league. Some of the family that runs NASCAR is drawing significant annual salaries, while the teams collectively are operating at a loss.
Jordan’s 23XI Racing has reportedly spent a substantial amount on legal fees, indicating his dedication to the cause. There have been reports of NASCAR executives’ reactions to the situation, with a sense of shock when they found out the magnitude of Jordan’s commitment to the fight. It is important to remember that there are other stock car racing series that run at smaller tracks, and NASCAR does not see these as a threat. The fact that the court has ruled that those other series don’t qualify as a “premier stock car racing series,” speaks to the power and the monopoly of NASCAR. The teams’ argument hinges on the fact that any upstart racing series would need to spend a massive amount of money to build new, large racetracks or would need NASCAR’s permission.